The US Tsy curve has flattened......>

US TSYS SUMMARY: The US Tsy curve has flattened slightly, as 10s recede from the

closely watched 3.00% after the 3.05% pivot level held firm. Overall, Tsys are

trading mildly higher, with the 10Y remaining below 3.00% at 2.968% down 1.3bps

and little effected by soft UK Q1 GDP.

- Trade had been fairly limited during Asia, as Tsys ignored the BoJ's latest

MonPol decision. As a reminder the BoJ stood pat as expected & dropped the

language surrounding meeting its CPI target around FY2019.

- Tsy found a small bid as European markets opened but flow was mainly seen in

futures space. Sharp rise in Gilts in wake of soft GDP data then supported move

to session highs, but have since given some of those gains.

- The Eurodollar strip has extended small gains seen overnight, with the white

and red contracts 0.5-2.5 ticks higher, while green and bluer are 3ticks higher,

underpinned by yesterday's lower 3-Month $LIBOR fixing.

- Focus now turns to US GDP & PCE data at 0830ET.